EX-12 11 y39152exv12.htm EX-12: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-12
 

Exhibit 12
TAM S.A.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
    At December 31,     At June 30,  
Brazilian GAAP   2002     2003     2004     2005     2006     2007  
    (in millions of reais, except otherwise stated)  
Earnings(1)
                                                
Income before income taxes
     (871 )     235       498       296       853       50  
Fixed charges
     324       389       274       299       355       154  
Total earnings
     (547 )     624       772       595       1,208       204  
Fixed charges(2)
                                                
Interest costs(3)
     133       173       57       90       115       15  
Estimated interest within operating lease expenses(4)
     191       216       217       209       240       139  
Total fixed charges
     324       389       274       299       355       154  
Ratio of earnings to combined fixed charges(5)(6)
             1.60x       2.82x       1.99x       3.40x       1.32x  
                                                 
    At December 31,     At June 30,  
U.S. GAAP   2002     2003     2004     2005     2006     2007  
    (in millions of reais, except otherwise stated)  
Earnings(1)
                                                
Income before income taxes
     (1,651 )     957       630       644       1,242       323  
Fixed charges
     353       406       294       329       394       258  
Total earnings
     (1,298 )     1,363       924       973       1,636       581  
Fixed charges(2)
                                                
Interest costs(3)
     236       284       187       229       267       178  
Estimated interest within operating lease expenses(4)
     117       122       107       100       127       80  
Total fixed charges
     353       406       294       329       394       258  
Ratio of earnings to combined fixed charges(5)(6)
             3.36x       3.14x       2.96x       4.15x       2.25x  
 
(1)   Total earnings is the sum of our income before income taxes and our fixed charges, as defined below.
 
(2)   Fixed charges is the sum of our interest expenses and our estimated interest within operating lease expenses.
 
(3)   Relates to interest costs on continuing operations.
 
(4)   Represents one-third of our operating lease expenses, which is a reasonable approximation of the interest factor included within operating lease expenses.
 
(5)   Ratio of earnings to combined fixed charges is calculated by dividing total earnings by total fixed changes.
 
(6)   Due to the loss incurred in 2002, earnings were insufficient to achieve ratio coverage of one- to-one. The amount of earnings required to attain a ratio of one-to-one would be R$871 million (U.S.$451 million) and R$1,651 million (U.S.$855 million), under Brazilian GAAP and U.S. GAAP respectively. In each case, the U.S. dollar figures are based on translations into U.S. dollars at the rate of R$1.93 to U.S.$1.00, which was the U.S. dollar selling rate at June 30, 2007 published by the Central Bank on its electronic information system, SISBACEN, using transaction code PTAX 800, option 5.